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North Avenue Capital Closes Three USDA Loans Totaling Over $11.5MM

November 21, 2017, 07:15 AM
Filed Under: Industry News

North Avenue Capital (NAC), a specialized commercial lender, has announced the recent closing of over $11.5 million in USDA Rural Development Business & Industry loans to three rural businesses. Having secured this strategic debt financing, the companies will create or save approximately 115 jobs for Americans living and working outside of large metropolitan cities. The loans were made in North Carolina, Tennessee, and Illinois, expanding NAC's presence in the Southeast and Midwest.

NAC loaned $2.23 million to W&K Investments, LLC and facilitated the acquisition and consolidation of Five Oaks Nursery & Tree Farm in Wilmington, NC. Five Oaks Nursery owns more than 60-acres where the company grows tree and shrub inventory for sale and offers landscaping products and services to commercial and do-it-yourself customers.   

HD Hospitality, LLC is based in White House, TN and secured a $5 million loan to construct a 60-room Comfort Inn, a leading Choice Hotel brand. The property is located on a major highway strategically positioned between Nashville, TN and Bowling Green, KY and will be the newest interior corridor hotel in the immediate area.

Finally, NAC provided Versatech, LLC with a $4.35 million loan to refinance its debt with long-term financing for the component engineering and manufacturing operation. Based in Effingham, IL, Versatech produces components for automotive giants including Honda, Mercedes-Benz, Land Rover, BMW, Tesla, and Ford, along with heavy-machinery manufacturers including John Deere, GE, and Hitachi Metals.

According to NAC Chief Executive, Ben Chatraw, the group of borrowers illustrates a significant number of lower to middle market rural businesses still struggling to access capital from traditional lending sources. "Together with the USDA's unwavering commitment to build rural communities, NAC is thrilled to see more than 100 men and women joining or remaining in their respective workforces because of these loans," said Chatraw.

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